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3 Ways ADAPT is Making Practice Transitions Less Expensive

Posted by Bill Robinson, ADAPT President & CEO on 9/22/20 8:45 AM
Bill Robinson, ADAPT President & CEO

Know what you're signingWhile doing the research that led to the development of ADA Practice Transitions, we found a common theme: Dentists who had sold their practice frequently shared that they spent too much money with a broker – and felt they did not receive commensurate value.

We developed ADA Practice Transitions to focus on philosophy of care – matching dentists with a similar approach, for a more successful result – but we also wanted to give dentists a more cost-effective option. We designed our service to deliver tremendous value in a manner that was less expensive than the other options, sometimes by a lot.

Most dental transition brokers charge a fee that is a percentage of the practice’s value. Generally the conversation starts at about 10%. The percentage can be lower if you have a high value practice (~ $1+ million), are willing to sign an exclusivity arrangement, or allow your name to be used in marketing materials.

If you are considering working with a broker, make sure you understand the cost before signing on, including all the possible fees. Usually, the full costs are not publically available, so you will need to meet with the broker to understand what you will be charged. Ask whether things like a practice valuation, legal representation, and ads are included. (I’ll cover the full costs of a practice transition in a future post.)

We publish the ADAPT fees on our website so you know what we charge right from the beginning. While our fees do not include practice valuation or legal representation, you will almost always end up ahead with our pricing model – while getting the support you need for a successful transition.

We help you save money in three key ways.

1. Start the conversation online and via phone

Local brokers typically meet with you in person. They often come to your office and work through the details face to face. This inevitably costs you money, as your higher transition fees pay for the broker’s travel, maybe even that lunch they “treat” you to.

That doesn’t happen with ADAPT. We recognize the value of in-person meetings, but even before the pandemic, we could see the world moving toward virtual solutions. In a world where digital technology is readily at our fingertips, we made a conscious choice to structure our service in a way that keeps more money in your pocket while delivering the customized service you deserve as you navigate this important life decision. We built our platform to allow conversations and information sharing to take place efficiently and conveniently.

We made a conscious choice to structure our service in a way that keeps more money in your pocket.

It is true that you are unlikely to meet with your ADA Advisor face to face, but you will interact with them by phone and email — even video chat, if you prefer. Our platform elicits the information that, in the past, was learned through in-person contact. Because of that, the interactions with your ADA Advisor are more efficient. Plus, since that same information is shared with potential matches (only when you agree to share it, of course), we increase the likelihood that a face-to-face meeting between two dentists will be successful.

2. Don’t pay to find your own buyer

Many brokers require you to pay them if you sell your practice within a certain period of time — even if the broker did not find the buyer for you.

We heard from a number of selling dentists who were frustrated that, even when they found a buyer on their own (say, at a dental society meeting or through a colleague), they still had to pay their contracted broker.

With ADAPT, you only pay us when we suggested the right match to you. We only expect to be paid when we add value. This is occasionally painful for us, when we work hard on behalf of members who end up finding someone not on our platform. While we miss the revenue, we celebrate that both dentists have found a match.

3. Choose a partner who avoids conflicts of interests

Some (not all) brokers claim to equally represent both the buyer and the seller in the price negotiation, even though the bulk of their revenue comes from the seller. This can set up a conflict of interest that can be detrimental (and expensive) to the buyer. But it can also lead to a less satisfactory result for both buyer and seller.

At ADAPT, we believe it is essential to have representation that protects your interests, especially in a significant negotiation like this. We provide the same content, education, and coaching to both sides. Our focus is on helping you understand what to consider (and why) throughout negotiation. However, we do not actually broker that conversation. We educate; we will not negotiate. We can make the recommendations you need for lawyers, accountants, or lenders.

At ADAPT we believe that if dentists share a Philosophy of Care and clearly defined goals, then things like price negotiations go more smoothly because interests are aligned. That’s why we begin our process by spending time with you to make sure we really understand your goals. Your assigned ADA Advisor will only suggest matches that share those goals, so you can avoid unpleasant surprises during the negotiation stage.

Get the support you need – and stay in control of the process

Overall, the ADAPT process is built to provide you the support you need for a successful transition. We put you in control by providing relevant guidance, but you are firmly in the driver’s seat to make these crucial decisions.

We know that having to look up an answer online is not ideal. That’s why we assign an ADA Advisor to answer your questions and provide guidance along the way. You’re never alone, nor are you in the dark. As potential matches become available, a summary of their profile is shown to you in your dashboard. If you both decide you want to learn more, you are given more profile data, including contact info. This helps organize your choices so you can always see where you stand.

Ready to start? Create your ADA Practice Transitions profile now. When you join, you will be assigned an ADA Advisor who will guide you through every step. It’s free to join, and dentists seeking their first job after dental school pay $0 to be matched.

Submit Your Free Profile

Topics: selling a practice


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